Dakota. Reliant was in the nal stages of planning atakeover of Dakota Gasworks I

Dakota. Reliant was in the nal stages of planning atakeover of Dakota Gasworks Inc. a natural gas distributor thatoperated solely within North Dakota. Emerson went on a weekendshing trip with his uncle Ernest Wallace. Emerson mentioned toWallace that he had been putting in a lot of extra hours at theofce planning a takeover of Dakota Gasworks. When he returned fromthe shing trip Wallace purchased $20000 worth of Reliant stock.Three weeks later Reliant made a tender offer to Dakota Gasworksstockholders and purchased 57 percent of Dakota Gasworks stock.Over the next two weeks the price of Reliant stock rose 72 percentbefore leveling out. Wallace then sold his Reliant stock for agross prot of $14400. Using the information presented in thechapter answer the following questions.